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MNI BRIEF: Bank Of France Pushes Back Against Hawks

(MNI) Brussels

Bank of France Governor and ECB Governing Council Member Francois Villeroy de Galhau is sticking to his view that the ECB has already done the bulk of what it needs to do to bring inflation under control and that further hikes will be “more marginal”.

In an interview with French regional press, Villeroy responded to a question about further rate hikes, saying: “We have already come a long way in this area....”

When pressed on how much remains to be done in terms of tightening policy, he replied: “What remains to be covered is more marginal. We have decided on rapid rate increases since July, because we were even starting from negative rates! We are now at 3.25%, and it is the future effect of these past hike decisions that should essentially allow us to reach our objective within two years.” (See MNI SOURCES: ECB To Hold Rates At Peak Into 2024)

MNI Brussels Bureau |
MNI Brussels Bureau |

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